Avoid the Startup Trap

Working in startups can be fun and engaging (when they are succeeding) or can be overwhelming and depressing (when they are failing).  As team members, we invest our lives in the companies we work for (and sometimes they even deserve it) – nowhere this is more true than in startups. Sometimes, in large companies we can coast on the inertia of the company and hide in the employee herd, as long as we don’t stand out we will be fine. But in a startup, every character flaw in our business makeup is exposed to the team, every bad decision is apparent to everyone and any cracks in your armor are plainly visible (think small town hell).  Avoid dreams of working in a startup if:

1. You hate motivating yourself – in a startup you have to drive as much as being driven. There won’t be long strategy sessions or project management meetings or detailed job descriptions. This is do or die.
2. You dislike confrontation – if you dislike having to defend your ideas or expose them to criticism (often without warning), a startup is not a place for you.
3. You hate arriving early and leaving late – very often, startups are a collection of teams of one. When there is only you to rely on, expecting to keep a 9 to 5 is unrealistic.
4. You hate having savings – startups can be easy on, easy off. That is, teammates may change faster than you can say Constantinople. In startups, company pockets may not be big enough to let you go with a nice parting bonus.
5. You hate open spaces and sharing your browsing history – a lot of startups are open floor, open desk and visible screens all the time (it is cheaper that way). So if you like to read CNN for 45 minutes after you arrive, it will get uncomfortable fast.
6. You expect a large payout – two issues here
• The days when every employee got nice stock options are gone. You may get some, but never enough (unless you are close to the founders)
• Most startups fail… enough said.

By now, you should have a very good idea of whether you can work in a startup. If it is not your cup of tea, by all means remain in corporate America (not a bad option by the way).

The mobile financial services space is exploding

A good indicator for an industry is the number of job it requires to fill. In recent years the mobile financial services space has seen tremendous growth as you can see from the increase in the number of job postings with the words mobile financial services. From indeed.com we can see an amazingly good upward trend.

mobile financial services Job Trends

Mobile Financial Services jobs

This is good news for the financially underserved as they will certainly benefit from some well thought out services. MFS companies have their work cut out for them as they are creating a new space and as usual a lot of them will choose the wrong business model. Some of the biggest concerns for these type of services are:

• Legislation - In LATAM countries like Peru are issuing a whole new set of regulations regarding emoney and the type of companies that can provide services. In others, like Argentina, this is a grey area and in others there is no regulation.
• Adoption - making services that people use is difficult. Earning the trust of the consumer, being user friendly- and fast- enough to be practical. Having the right product mix, etc. etc.
• Competitors - everybody and their uncle is getting in on the action. Although, the primary entrants are the incumbent financial industry and the MNOs legislation may open the door to new entrants (like in Peru where MNOs are by law required to open their USSD channels).
• Competing technologies - USSD, SMS, apps, email. There are plenty of technologies to choose from and not a single one is a clear winner.
• Price - this one seems like an easy one, but remember that you are competing with cash so the price of the primary competitor is zero. Pricing a P2P under these conditions is hard. At the end of the day somebody has to pay for the service (infrastructure, commissions, etc.)

In any case, this is an interesting time to be in this space and the company that gather momentum and volume (like MPesa in Kenia) can reap the benefits or dominating this market.